The benchmark equity indices ended the day on a flat note after opening lower, pointing towards sustained buying near the support zones.
"Notably, this marked the third consecutive session where Nifty found support near its prior swing low and rebounded thereafter. However, a sustained follow-up move on the upside is still required to confirm a potential reversal," noted Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
GIFT Nifty is hinting at a gap up opening, as it trades 0.53% higher at 23,604.50 levels after crude oil prices eased to trade over 3% lower. Global benchmark brent crude was down 3.22% at $94.66 a barrel, while West Texas Intermediate traded 3.85% lower at $92.32.
Earlier in the evening, US President Donald Trump had said that America was in the final stages of negotiations with Iran to end the war.
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Accordingly, the immediate resistance for the index is placed at the 23,500 level. A breakout beyond this level will open further upside to 23,600 and later to 23,680, according to Shrikant Chouhan, Head of Equity Research at Kotak Securities.
On the flipside, key support for Nifty lies between 23,300 and 23,250 levels. "If the index slips below 23,250 it could retest the levels of 23,150-23,100," Chouhan added.
Nifty Bank
The Nifty Bank index outperformed the benchmarks but continued to trade below its key moving averages.
"From a technical standpoint, the zone of 54,700-54,800 is likely to act as an immediate resistance for the index. A decisive move above the 54,800 mark could trigger an extension of the pullback rally, potentially pushing the index towards 55,400," stated Shah.
On the flipside, key support zones for the index lies between 53,900 and 53,800 levels.
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Market Recap
Indian equity benchmarks ended a topsy-turvy trading session with minor gains. The Nifty 50 ended 0.05% higher at 23,416.55, up 10.95 points. The Sensex closed 0.02% higher at 74,360.01, up 13.84 points.
Broader markets outperformed the benchmark. Nifty Midcap 150 rose nearly 0.5%, led by Nippon Life India and IPCA Labs, both up over 4.5%. Nifty Smallcap 250 gained nearly 0.6% and closed higher for the third straight day.
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